France, Singapore conduct post-quantum cryptography test

France, Singapore conduct post-quantum cryptography test

France and Singapores central banks have completed a joint experiment testing post-quantum cryptography techniques, and they say it sets the foundation for implementation in the payments sector.

The Monetary Authority of Singapore (MAS) and the Banque de France (BdF) revealed that their initiative focused on quantum-secure email encryption. Their goal was to make email communications quantum computing-proof while retaining their compatibility with the existing Internet standards.

The two banks limited the pilot to Microsoft (NASDAQ: MSFT) Outlook as the email client; they exchanged emails that were digitally signed and encrypted using post-quantum computing (PQC) algorithms. They selected emails to start with as “they may carry confidential information, making them a prime target for cyberattacks.”

However, the project was a test run for future work on PQC algorithms for the financial sector as the threat of quantum computing looms large over the industry.

“There is potential to integrate this technology into payment networks. By integrating PQC algorithms into payment networks, financial institutions can future-proof their security measures against the looming threat of quantum computing, ensuring the long-term integrity and confidentiality of sensitive financial data,” the two banks said.

It‘s one of several projects geared toward ensuring the financial services industry isn’t vulnerable to quantum computing attacks. Today, quantum computers are still at a formative stage, and experts say it will be several years before they can pose a real danger globally.

However, the sector has advanced massively in recent years, and the predictions of a quantum apocalypse are getting worryingly closer. Some believe that quantum computers could pose a danger within a decade, while others, like Chinese researchers from Shanghai University, believe they have already cracked encryption with quantum computing.

The G7 Cyber Expert Group, in an October report, noted: “While the exact timeline for developing quantum computers with these capabilities is uncertain, there is a real possibility that such capabilities could emerge within a decade.”

Most companies are investing in being quantum-ready; for instance, Apples (NASDAQ: AAPL) encryption for iOS now covers quantum computing attacks. Governments are also encouraging enterprises to prepare for the inevitable; a White House executive order described the quantum danger as “a pressing matter of national security” and revealed that the US was already acting on the issue.

The financial industry faces the biggest risk, making initiatives like the BdF-MAS joint project critical.

“Financial institutions that prepare early for the quantum era will not only mitigate future risks but also position themselves to retain public trust in digital financial services,” commented MAS deputy managing director Jacqueline Loh.